What does this mean?

If you're a SeneGence LipSense distributor, and happen to have a downline (people who have signed up under you), and they purchase products from SeneGence — woo hoo! You get a commission! Actual money!

(Photo by Sharon McCutcheon on Unsplash)

BUT! (You knew there was a but, didn't you?)

To be paid this commission — to 'play' — you have to place an order with SeneGence that same month.

And it's not even 'Buy something, get the full amount owing to you'. Oh no. It's much more complicated and nasty than that.

This is easier with an example. Let's say your downline, Lisa, places a nice juicy order, that's worth 800 PV.

Note well — commissions are only paid on items that attract Points Value (PV) — various things like makeup applicators, stickers, bags, testers and other supplies do not earn PV. So if Lisa is ordering heaps of non-PV stuff, you'll earn nothing on that part of her order. Commission is not based on the amount of money spent, but the PV of the order/s of that month.

OK. So Lisa's bought heaps of stock that is worth 800 PV. And you've potentially earned $80 commission (10% of the 800 PV). Woo hoo!

Now, if you want to earn the first $10 (yes, TEN DOLLARS) of the commission value (CV) owing to you, you need to place a 100 PV order that month too, which you'll hit if you buy eight tubes of LipSense. This is pay to play — if you want to 'play' (earn commissions etc), you have to pay.

This will cost you well over $100, depending on which country you're in. A 100 PV order is $200 USD, at 30% off. So that's $140. Now add on their over-priced shipping & handling fees. So it might be more like $160 all together.

(From the Distributor Compensation Plan)

BUT, if you'd like the rest of the commission owing to you, that $70 (Lisa's $80 – $10), you have to have ordered 300 PV over the month to 'qualify' (and the proviso about products that attract PV applies here too — you can't stock up on applicators, testers and supplies to do this).

A 300 PV order is expensive. It's $600, with a 40% discount — so you'll be roughly $360 out of pocket. And that's a lot more stock to sell (or pile up in your house).

This 'remainder of what's owing to you' is called the Group Sales Volume (GSV) Bonus. It's very complicated, hard to understand (intentionally), and there are other ways of achieving it, which involve having a big downline etc. We're trying to keep it simpler here, so we all have some chance of understanding it. You can see a PDF about it in more detail here.).

So, to get the full commission owing to you from Lisa — the initial $10, plus the remaining GSV of $70 ($80 total), you will have to have ordered at least $600 worth of stock (costing $360 USD, when the 40% discount is taken into account). Add on shipping & handling.

To earn that $80 from Lisa, you've just spent more than $360.

If your downline commission is less than the amount you have to pay to earn it, you're actually going backwards financially. Sure, you've got more stock, and maybe you're selling $600 worth of product every month ... but most don't.

Guess who wins this particular game (hint it ain't you).

Unless! Unless you're recruiting heaps of downlines, and they're building THEIR downlines, and so on. In which case, you can make an income. Maybe.

And it's not just commissions where SeneGence gets you to pay to play. This is just the tip of a most expensive iceberg.

Further reading

MLM Attorney: Required Purchases, the MLM Pay to Play Dilemma

MLM — The Truth: Red Flag #3: Pay to play purchases

MLM Legal: What does the phrase “pay to play” mean?

#paytoplay #SeneGence #LipSense #MLM #pyramidscheme #antiMLMmovement